Beijing Wields Big Stick Against Megaships

BEIJING—Brazilian miner Vale SA has spent around $2 billion on a fleet of huge ships to carry its iron ore from Brazil to China. The problem: China won't let them in.

Chinese regulators have cited safety concerns over Valemax ships, as the cargo vessels are called. But analysts and industry observers point to a different reason: opposition from a Chinese shipping-industry group dominated by a state-owned company.